ED Pulls Up 5 Pharma Firms in Tramadol-Alprazolam Black Market Probe
Middlemen were sourcing large quantities of psychotropic drugs from pharmaceutical manufacturers and illegally diverting them to the black market.
New Delhi: In a high-impact development for the pharmaceutical sector, the Enforcement Directorate (ED), Jalandhar, has launched extensive search operations at 16 locations across six Indian states, targeting companies allegedly involved in the illegal diversion of psychotropic drugs, including Tramadol and Alprazolam, into the black market.
The searches, conducted on June 17, 2025, were part of a money laundering probe linked to an inter-state drug trafficking network. The operation covered office and residential premises associated with a cluster of pharmaceutical manufacturers and trading firms, including Biogenetic Drugs Pvt. Ltd., CB Healthcare, Smilax Pharmachem Drug Industries, Aster Pharma, Soul Health Care (I) Pvt. Ltd., Alex Paliwal and other related individuals
According to the ED, the action stems from a case initiated on the basis of an FIR filed by Punjab Police under multiple provisions of the Narcotic Drugs and Psychotropic Substances (NDPS) Act, 1985.
During the coordinated raids across Punjab, Uttar Pradesh, Uttarakhand, Himachal Pradesh, Rajasthan, and Maharashtra, the ED seized digital devices (including mobile phones and laptops), as well as incriminating records and documents believed to be central to tracing the financial trail and uncovering the modus operandi of the drug supply network.
“Various incriminating records, digital devices like mobile phone, laptop etc, and other relevant evidences critical in establishing the financial trail and uncovering the modus operandi of the entities involved were recovered and seized,” the agency stated in its official press release dated June 18, 2025.
The ED's preliminary investigation revealed that middlemen were sourcing large quantities of psychotropic drugs from pharmaceutical manufacturers and illegally diverting them to the black market. These drugs, which are Schedule H and H1 substances under the Drugs and Cosmetics Act and regulated under NDPS, were reportedly being sold at inflated prices through drug peddlers, generating substantial proceeds of crime.
“Middle men were procuring huge quantities of psychotropic tablets from pharmaceutical firms/ manufacturing companies and were diverting it for sale in black market at high cost than the retail price through drug peddlers, thereby generating huge Proceeds of Crime,” the ED noted.
The involvement of licensed pharma firms in such diversions poses serious concerns for the sector, particularly with regard to regulatory compliance, Schedule H drug monitoring, and the abuse potential of prescription medications. It also highlights the increased scrutiny now being placed on the supply chain integrity of psychotropic and Schedule X drugs.
The ED has confirmed that further investigation is ongoing, and more evidence is expected to emerge from the analysis of seized digital data and documents.
